How DOGE is Weeding Out Fraud in Social Security

Let’s talk about something that’s at the core of retirement planning in America: Social Security. It’s one of the most important income sources for millions of retirees, but behind the scenes, there’s a lot more happening than monthly checks.

Over 20 Million People Over 100? Fraud or Flawed Records?

Yes, you read that right. According to new data, over 20 million people in the Social Security system are recorded as being over 100 years old. Elon Musk even called this the “biggest fraud in history,” citing cases of people supposedly being over 150—or even 200—years old.

Let’s put this into perspective: the U.S. Census reports only about 101,000 Americans are over 100, and fewer than 100 people nationwide are over 110. So how can millions be listed in government databases as still alive?

The Inspector General clarified that 18.9 million of these cases are most likely individuals who died decades ago—before we had electronic death reporting. And in most cases, these people aren’t even receiving benefits. The issue here is sloppy record-keeping, not necessarily active fraud.

But it’s still a problem. And it’s one that costs taxpayers billions.

Improper Payments: A System Under Strain

Let’s talk numbers. From 2015 to 2022, the Social Security Administration issued $8.6 trillion in benefits. Of that, $71.8 billion were improper payments—mainly overpayments. That’s nearly $9 billion per year, and we’re only recovering a fraction of that.

Erin pointed out that only about 17.56% of these overpayments are ever recovered. That’s not sustainable, especially when Social Security trust funds are already projected to face a shortfall by the early 2030s.

Why Is This Happening?

A big part of the issue is the outdated technology and processes still used by the Social Security Administration. Believe it or not, some retirement records are still stored in a limestone mine in Pennsylvania, dating back to 1955.

On top of that, the system relies heavily on self-reporting. There’s no strong incentive for someone to report a change in income, marital status, or even death—especially if it might reduce their benefit. That creates a ripe environment for both honest mistakes and fraud.

Fixes Are Possible (and Necessary)

So what can we do?

• Modernize the system: This includes updating databases and digitizing records.
• Automate death reporting: Using third-party verification can reduce reliance on self-reporting and help avoid improper payments.
• Focus on prevention: Instead of trying to claw back money after it’s wrongly paid, the emphasis should be on improving accuracy upfront.

These fixes won’t just save money—they’ll help protect Social Security’s sustainability for future generations.

The Bigger Picture: Media, Misrepresentation, and Misinformation

Let’s not forget how this story is being presented. Some headlines scream things like “Elon Musk is coming for your Social Security,” which stirs up fear but doesn’t tell the whole story. Erin emphasized the importance of accuracy and context—because when it comes to something as crucial as Social Security, we can’t afford panic and misinformation.

What It Means for You

This isn’t just a government issue—it’s a retirement issue. Whether you’re nearing retirement or just starting to save, the reliability of Social Security is a piece of the puzzle. We need a system we can count on, and that means supporting smarter processes, better data, and long-term planning.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.